Artis REIT (TSX:AX.UN) said it's entered into an unconditional agreement to acquire 1165 Kenaston St., which is comprised of an industrial building and two-storey office complex located in the Cyrville Industrial Park, east of St. Laurent Boulevard and north of Innes Road.
The building is 100-per-cent leased to Concord, Ont.-based St. Joseph Communication on a long-term lease expiring in 2019, with contractual rent increases.
The REIT said the purchase price represents a going-in capitalization rate of 6.9 per cent and a per-square-foot purchase price of $119, and noted it expects to finance the amount with cash on hand and by assuming approximately $11.7 million of existing mortgage financing that matures in May 2015 and bears interest of 4.5 per cent per annum.
The $21.5-million price tag is higher than the $15.65-million fetched in early 2010, when Kenaston KS Inc. bought the property from SREIT (1165 Kenaston) Ltd.
Artis announced the Ottawa acquisition, which is anticipated to close on or about May 27, along with four other new deals, with the five transactions totalling $189 million. Three of the five were for properties located in Western Canada -- the Victoria Square Shopping Centre in Regina, and the McGilivray Cineplex and MTS Place in Winnipeg -- with the only other eastern Canadian deal involving a 19-storey office building in Toronto's Downtown North district.
The company also said it was buying two retail and office properties in Minnesota for US$53.3 million, and confirmed the closing of $60.3-million-worth of previously announced office and industrial property acquisitions in Ontario.